Industry News - Chauffeur Driven Magazine

Details: Category: Industry News; Published: 2021, July 06

While operators across America are finally seeing the proverbial light at the end of the tunnel, and experiencing an uptick of business largely thanks to the massive vaccine rollout, Canadian businesses are still struggling—particularly those who service the US-Canada border. Essentially closed since 2020, Canada has greatly restricted those coming in and out of the country, which is a problem when the North American partners’ economies are so closely linked. Even with vaccination rates above 50 percent in Canada, the Canadian government requires a 3-day quarantine in a government facility followed by a 14-day at-home quarantine for travelers coming into the country.

Absolute Styling's 20,000-square-foot facility at Vancouver International Airport

One such company affected by the situation up north is Absolute Styling Limousine. The Vancouver, B.C.-based company occupies a rare corner in today’s chauffeured ground transportation space as they are one of the few high-end car services that is also a conversion operation. In addition to providing luxury transportation, Absolute Styling is a Transport Canada and NHTSA-certified Limousine Bus Manufacturer, and certified Mercedes Master Upfitter.

Absolute Styling experienced a healthy growth since its founding in 2013, and maintained a close relationship with Air Canada, driving its executives and first-class passengers. In February 2019, Absolute Styling moved its operations to a 20,000-square-foot facility at the Vancouver International Airport in Air Canada’s hangar, which offered plenty of space to run both operations.

One of Absolute Styling’s custom MB Sprinter interiors

“In March 2020 everything came to a standstill,” says Absolute Styling President Lorenzo Armani. “Air Canada virtually stopped flying and lost 90 percent of their passengers—and so did we! With no flights coming in and a general uncertainty, I had to lay off all my staff at the end of March 2020 thinking that it would only last a few months.”

Fortunately, the company’s position as a conversion business brought much-needed resources. Although Armani says that his Sprinter builds were at half capacity in September 2020, he credits conversions with sustaining the company through the pandemic. After being forced to sell all 15 of their vehicles on the transportation service side in June 2020, Absolute Styling began a slow rebound and started to rebuild its fleet at the beginning of 2021. Today, the company offers 2021 Cadillac Escalades, Mercedes-Benz S-Class sedans, and custom Sprinter vans.

However, there is a silver lining on the horizon not only for Absolute Styling, but for all US and Canadian operators who work across the borders. Effective July 5, fully vaccinated travelers—who already have the right to enter the country—can avoid being subject to federal quarantine requirements. In addition, travelers arriving by air will no longer be required to stay at a costly government-authorized hotel. To be considered fully vaccinated, Canadian visitors must have received all the doses of a Health Canada-approved vaccine (or combination of vaccines) at least 14 days before their arrival and show the proper documentation. While there is currently no date when the border will be fully open to everyone, Prime Minister Trudeau has said that he will consider opening when countrywide vaccinations reach 75 percent.

“We are now vaccinated over 70 percent in Province of B.C., and over 50-60 percent across Canada,” says Armani. “Now we can really see the light at the end of the long Canadian tunnel. I look forward to see our American friends, family, and business partners and be able to go anywhere.”

Visit absolutestylinglimo.com or absolutestyling.com for more information.

[07.05.21]

Details: Category: Industry News; Published: 2021, June 30

The US Treasury Department, which is administering the CERTS program, has made an important change to the application and how companies list their PPP loans/grants. This primarily affects those companies that filed an application within the first week of the June 19 portal opening.

The CERTS program is for motorcoach, school bus, passenger vessel, and pilotage vessel transportation service providers who were in business on March 1, 2020. The eligible transportation service provider must have experienced a revenue loss of 25 percent or more between calendar year 2019 and 2020 as a direct or indirect result of COVID. Note that operators who run limousine services generally are not eligible for this assistance, although there are exceptions. Click here for more eligibility requirements.

The application process initially only allowed companies to list one PPP loan number, while most companies applied for and received two rounds of PPP funding. The instructions weren’t clear, and the Treasury apparently mistakenly assumed applicants would add the amounts together.

Operators who only listed one PPP loan amount but received both rounds will need to log back in to the application and amend the amount. To do so, contact Treasury at CERTS@treasury.gov or via the helpdesk at 877.398.5862 and request that your application be opened so you can correct the error.

The National Limousine Association also reported on Facebook that applications must include the correct NAICS code on your tax returns. NLA noted that most members will likely use 485320 (limo services), which is not listed as an approved code. If you are applying for CERTS and you have 485320 listed as your code, you should immediately update it to reflect the actual business model with the proper NAICS code (note that this may require filing an amended tax return). NLA urged operators to consult their CPA, noting that acceptable codes were 485990 (All Ground Transportation) or 485510 (Charter Bus Industry).

Additionally, Treasury has updated its FAQs (as of June 29) to address the issues and questions that have arisen since the application portal opened on June 19.

Need More Assistance?
If you are still looking to apply—the deadline is currently July 19 at 11:59 p.m. ET— and have questions, the United Motorcoach Association (UMA) will address the program changes in its weekly onlineTown Hall meeting on Thursday, July 1 at 2 p.m. ET (registration required). The American Bus Association (ABA) will also host a webinar on the updates to the process on July 7 at 3 p.m. ET. The webinar will include what members who have completed process experienced and their advice on a smooth application submission (registration required).

Matt Daus also explains the program in detail and how to apply here. His law firm, Windels Marx, is also available to answer any questions or assist operators with applications.

[06.30.21]

Details: Category: Industry News; Published: 2021, June 29

The Global Business Travel Association (GBTA) recently released the findings from its twentieth COVID poll assessing how GBTA members are managing the return to business travel. The poll was conducted across its international membership from June 7-11, 2021.

The first poll of this summer revealed a continuation of the positive momentum reported last month, as companies implement or finalize plans to resume domestic business travel. Two-fifths (40 percent) of respondents say their company’s plan to resume non-essential domestic business travel has “already happened” in the country where they are based, compared with last month’s 34 percent allowing “some” domestic travel. An additional one-third (33 percent) say their company has finalized a date (8 percent)—or is working to finalize a date (25 percent)—to resume domestic business travel. Only one-quarter are “waiting to see what happens” (18 percent) or are “not sure” (6 percent).

While domestic business travel nears a return, the outlook for international business travel remains murky. More than three in five respondents (62 percent) say their company is waiting to see what happens or is not sure about resuming non-essential international business travel from the country where they are based. And in Canada, both domestic and international business travel plans have stalled or been delayed (the country is partially reopening to vaccinated travelers in early July).

Suzanne Neufang GBTA GBTA Executive Director Suzanne Neufang

“After a spring marked by growing optimism in most regions, many companies are now making plans to resume business travel—especially in the US and Europe. While there is still caution around cross-border travel, almost three-quarters of our poll respondents say their company has resumed non-essential domestic business trips, or is working to finalize a date to resume these trips,” said GBTA CEO Suzanne Neufang. ”While this is an important breakthrough, our research says it will take some time for companies to allow as many trips—or even the same kind of travel—as they did before the pandemic.”

Key highlights:

Employee willingness to travel continues to grow. Three in four (77 percent) feel their employees are “somewhat willing” or “very willing” to travel for business in the current environment. This is 12 percentage points higher than in the last poll (May 2021).
Most travel buyers report an increase in business travel spend. When asked how their company travel spend changed in May 2021 compared to the prior month, six in ten (60 percent) report their company’s spending increased “somewhat” to “a lot,” whereas one in four report spending remained “the same.” Only 15 percent report travel spend decreased (13 percent) or are unsure (2 percent). Respondents based in the US (68 percent) are more likely than those based in Europe (54 percent) to say their company’s travel spend has increased from the previous month.
Companies are making plans to resume domestic business. Two in five respondents (40 percent) say their company’s plan to resume non-essential domestic business travel has already happened. An additional one-third say their company has decided on a date to resume domestic business travel (8 percent) or is working to finalize a date but has not decided or announced one yet (25 percent). Only one-quarter say their company is waiting to see what happens (18 percent) or are not sure.
Many companies are taking a wait-and-see approach with international business travel. Only one in 10 respondents (12 percent) say their company’s plan to resume international business travel “has already happened.” One-in-four say their company has decided on or announced a date to resume international travel (5 percent) or is working to finalize a date (21 percent). However, most say their company is “waiting to see what happens” (39 percent) or are not sure (23 percent).
Sales/account management trips and blue-collar service trips will lead the recovery. More than half expect the number of these trips will return to the pre-pandemic level within a year. However, expectations regarding other types of trips—such as internal collaboration and education/professional development trips—will take longer to recover. One-fifth (19 percent) expect the number of internal collaboration trips will never recover to the pre-pandemic level.
Companies finalize office re-opening plans. Two in five (43 percent) say their company’s office reopening plan has already happened in the country where they are based. Almost half say their company has decided on or announced a date (24 percent) to reopen the office or are working to finalize a date (21 percent).
Will new remote work policies impact business travel? Among respondents who expect their company will allow more flexibility to work from home, two-thirds (65 percent) expect the change will not affect business travel. One-third (30 percent) expect increased flexibility will lead to less business travel while five percent expect it will lead to more business